WINE SHORTAGE?

Posted on
November 02, 2012
by
John McCabe

I was reading the news reports that there will be a Wine shortage next year (see below for more details).

The bad news is that French production is expected to fall by 19%, Argentina by 24%, Italy by 3.5% etc
The problem is that these are general figures and make no allowance for quality. So in Australia we don't know if Riverina will suffer more than Coonawarra (no bad thing, eh?)

The really bad news is that U.S. production is up 7%. So it looks like we'll all be drinking Blossom Hill - NOT!

NEWSExperts have predicted a world wine shortage after forecasts
indicated production would slump to the lowest level since records began
in 1975. Bad weather has destroyed grape harvests across the globe and the fall in production is likely to push up prices.

Output
is expected to fall from 264.2 million hectolitres in 2011 to 248.2
million hectolitres this year, according to the International
Organisation of Vine and Wine (OIV). It said the hardest-hit country would be Argentina, where output will drop 24%. France also took a battering due to winter drought, cold weather, hailstorms, a heat wave and a dry summer. Production is expected to fall 19% to 40.5 million hectolitres. Italy
also suffered but a less severe output drop of 3.4% should see it
overtake France as the world’s largest wine-producing country with 40.8
million hectolitres.

The one major producer to buck the trend is the USA, where output is expected to rise by 7%.

Global thirst for wine is growing – particularly in the developing world – and demand is set to exceed supply. World
wine consumption is estimated at between 235.7 million hectolitres and
249.4 million hectolitres, with a further 30 million hectolitres used to
make spirits, vermouth and vinegar.

OIV statistician Victor
Magalhaes said: “If we don’t have availability in the market, there’s a
strong chance some products will increase in price.” Federico Castellucci, the OIV’s director general, added: “We’re dipping into the reserves for supply.”